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Japanese PM Shinzo Abe during his meeting with Danish PM Lars Loekke Rasmussen on July 10, 2017 in Copenhagen, Denmark.
TOKYO – Sunday’s snap parliamentary election offers an important thing for voters along with also investors abroad: growth along with also market stability. Shinzo Abe’s ruling party will almost certainly secure control of the House of Representatives for another four-year term. in which’s not bad news since, under his leadership, the economy will be humming along with also the stock market will be at a 20-year high.
however hidden behind the economic curtain are a slew of corporate scandals. When Kobe Steel, Japan’s third-biggest steelmaker, announced Tuesday in which in which had faked quality-control data on its products, shock waves propagated through global supply chains. Steel, aluminum along with also copper products used in everything through Japan’s iconic Shinkansen bullet trains made by Hitachi to Toyota cars, Boeing aircraft along with also even nuclear power plants may have been affected, while the number of companies hit more than doubled to about 500.
The falsification was apparently carried out with the knowledge of quality-control managers along with also continued for decades, according to a Nikkei report in which cites anonymous sources. Kobe Steel admitted in which the fudging had been happening for at least 10 years. While the impact remains unclear, some regulators are sounding the alarm: The European Aviation Safety Agency recommended companies suspend buying Kobe Steel products as Japanese authorities investigate. The U.S. Justice Department will be right now asking the steelmaker’s American unit to provide documents related to its products sold to U.S. companies.
On Friday, Kobe Steel said one of its copper plants was under investigation for violating Japanese industry standards. Kobe Steel stock closed down 1.59 percent in Tokyo to close at 868 yen. The shares have slid 36 percent since the scandal broke.